Wool Prices Rebound
May 5, 2017
Week 44 saw a reduction in quantity with 38,922 bales being offered to the trade. Although the benchmark Eastern Market Indicator lost 11 cents last week, it actually rose slightly (6 cents) on the last day of selling as the buyer confidence that was not evident on the first day slowly returned.
On the opening selling day this week, that positive tone was apparent from the first lot in the Eastern States markets all the way to the final hammer in the Fremantle region. All types and descriptions across the entire merino micron spectrum enjoyed gains, generally between 30 and 60 cents with lesser style/spec wools experiencing similar rises as buyers fought for market share. The EMI rose 22 cents to close the day at 1523 cents, easily accounting for the fall of the previous week.
The second day of selling was very similar to the first, the market quickly found an increased level and then strongly maintained or slightly increased those levels until the final lot. Once again, all types and descriptions experienced similar rises, this time generally between 20 and 40 cents. The EMI added a further 21 cents to close at 1544, an overall increase of 43 cents for the week.
The skirting market also recorded gains but not to the extent of the fleece, generally an overall increase of 20 to 40 cents with lower vegetable matter lots (>3 percent) most affected. The crossbred market again found good trade support, resulting in general price increases of between 5 and 10 cents for the week. The oddment market performed solidly on both selling days with most types and descriptions selling at levels slightly above those achieved at the previous sale.